January 21, 2019
Quarterly data released by Strategic Insight has revealed a sluggish retail life insurance market for the 12 months to September 2018.
While overall risk premium inflows (which include both new and inforce business) increased by a small margin (1.7%) during the year to September 2018, annual risk market sales fell by just over two percent.
Focussing on the individual product markets, Strategic Insight reports year on year sales for term life, TPD and trauma insurance fell by 7.6% to 30 September 2018.
Companies doing best during this period included:
- AIA Australia – up 7.8%
- Zurich – up 3.8%
- ClearView Life – up 1.1%
Double digit falls, however, were experienced by:
- BT/Westpac – down 23.3%
- MLC Life Insurance – down 15.3%
- OnePath – down 10.8%
Looking at the individual income protection insurance market to 30 September 2018, where new business sales dropped by 6.2% for the year, best performers included:
- CommInsure – up 21.3%
- AMP – up 18.9%
- Zurich – up 2.3%
Meanwhile, significant falls in individual IP sales were experienced by:
- MLC Life Insurance – down 27.5%
- BT/Westpac – down 20.8%
- OnePath – down 10.4%
Overall reductions in individual lump sum and IP business were offset by a significant increase in group life insurance sales, which grew by a spectacular 26.3% during the year to September 2018, contributing to a 2.1% growth in overall risk new business sales.
BT/Westpac and AIA Australia led the way in group risk sales increases for the period, while TAL Group and AMP experienced significant reductions in sales growth.